UK-born, global distribution and record label services provider Ditto Music is launching a new blockchain-backed suite of tools and applications for musicians called, Bluebox.
Ditto has raised $1 million in private seed capital to create Bluebox, led by blockchain investment firm Kosmos Capital at a valuation of $20 million.
Launching May 2020, Bluebox will offer a suite of tools for the music industry, using blockchain technology to record ownership and split royalty payments.
The company claims that Bluebox will lead to ‘higher collection rates [while] massively reducing the loss of earnings currently experienced by artists’.
For musicians, Bluebox will instantly generate legally binding smart contracts between all parties involved in the creation of songs, including producers, writers, sample owners and more.
Using a single database, any information supplied through Bluebox is verified using blockchain technology, allowing for accurate multiple split payments for the lifetime of the sound recording.
Bluebox will also power Ditto Music’s new music publishing division, about which more information will be released in the near future.
Bluebox has already secured the support of music industry partners such as MGM and Sentric Music.
Ditto says that it currently pays out around $100 million a year to artists across the world and will be one of the first to incorporate blockchain-backed Bluebox technology into its system of 250,000 users.
“It’s going to revolutionise payments across the music industry and help the millions of artists claim what is rightfully theirs”.
Lee Parsons, Ditto
Ditto Music and Bluebox CEO & Founder Lee Parsons (pictured) said: “Aside from the billions of dollars in unclaimed royalties that Bluebox will be tackling, the Bluebox app will let creators lock in their split payments at the point of creation and get paid separately and accurately for each use of that song.
“It’s going to revolutionise payments across the music industry and help the millions of artists claim what is rightfully theirs”.Music Business Worldwide